'Disturbing': Allan government accused of 'cutting' oversight of government spending under guise of modernisation
The Victorian government has been accused of cutting financial integrity measures despite state debt being forecast to hit $194 billion in just four years' time.
The Allan government has proposed a series of reforms to 'modernise' Victoria's financial management regulations, but the state opposition has accused the government of reducing oversight of government spending.
"There has never been a more important time to scrutinise the overspending of the Victorian Government in this state's history... (yet) under the guise of improving financial integrity, the Labor Government is cutting it,' shadow treasurer James Newbury told SkyNews.com.au.
A key measure in the bill is the removal of the requirement for a 'warrant' to be issued before any taxpayer funds can be released from consolidated revenue and spent by government departments – a process that requires the sign off of the state's Governor and the Auditor-General.
Justifying the move in parliament, Finance Minister Danny Pearson said the warrants requirement was an 'antiquated cash accounting system'.
'Warrants originated in the days when public servants would seek to take cash from the vaults below Old Treasury Building to fund the activities of departments… once it was taken, there was no practical way to track it,' he said.
'We now have modern banking and IT systems, and strong requirements to provide annual reports demonstrating how funds are spent, making warrants redundant in the 21st Century.'
But shadow treasurer James Newbury said the removal of warrants was 'disturbing'.
'Since our Parliament was formed, the Victorian Governor formally signed off on Government spending," he said.
'Labor wants a blank cheque and is attempting to change the law, so that the Governor no longer has oversight of Labor's profligate spending.
'These changes are disturbing and the Opposition strongly opposes them.'
Responding to the claims, a Victorian government spokesperson said the Opposition's concerns were 'complete rubbish'.
"Warrants are an inefficient and ineffective practice developed nearly two hundred years ago. This will bring Victoria in line with other Australian jurisdictions,' the government spokesperson told SkyNews.com.au
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